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    monopolist

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    The monopolist will produce at quantities that its aggregate profit for two periods maximized.
    Then in period 1, the demand curve is p1 = 1 - q1, and profit is:
    Profit1 = TR-TC = q1*(1 - q1) - (q1^2) /2 ...

    Solution Summary

    Facts about a monopolist are embedded and discussed in the solution.

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